On what does the Pearce Bespoke Development Fee depend?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
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Development Agreement
Pearce Bespoke If we determine that you are financially and operationally qualified to develop multiple Franchises, we may offer you the opportunity to enter into a Development Agreement, in which you will commit to develop a certain number of Franchises that we determine to be appropriate. We have the right to determine the number of Franchises that we deem as appropriate in our sole and absolute discretion, based upon several factors, such as but not limited to, territory availability, your business acumen, your financial wherewithal, your ability to fund or obtain funding for your Franchise, and your overall business and operational experience. If you enter into a Development Agreement, you must pay us a one- time development fee
2025 FDD 9
upon execution of your Development Agreement ("Development Fee"). Your Development Fee will depend on the number of Franchises we grant you the right to open within the Development Area, and is calculated as set forth in the table below:
| Number of | | | |---|---|---| | Franchises We Grant | | | | | Franchise Fee | Cumulative Development Fee | | You the Right to | | | | | | | | Develop | | | | 1 | $55,900 | $55,900 | | 2 | $50,900 | $106,800 | | 3 | $45,900 | $152,700 | | 4 | $40,900 | $193,600 | | 5 | $35,900 | $229,500 | | 6 | $30,900 | $260,400 | If we permit you to open more than six (6) Franchises under a Development Agreement, your Development Fee will be equal to (i) $260,400, plus (ii) $30,900 for each additional Franchise that we grant you the right to develop. You will be required to enter into our then current form of Franchise Agreement for each Franchise that you wish to open under your Development Agreement, but you will not be required to pay any additional initial franchise fee at the time you execute each of these franchise agreements. If you enter into a Development Agreement, you must execute our current form of franchise agreement for the initial Franchise we grant you the right to open within your Development Area, concurren
Source: Item 5 — INITIAL FEES (FDD pages 9–11)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the Development Fee depends on the number of franchises the company grants the franchisee the right to open within a designated Development Area. Pearce Bespoke determines the number of franchises deemed appropriate based on factors like territory availability, the franchisee's business acumen, financial resources, funding ability, and overall business experience.
The Development Fee is a one-time payment due upon the execution of the Development Agreement. The FDD provides a table illustrating how the Cumulative Development Fee increases with the number of franchises granted, ranging from $55,900 for one franchise to $260,400 for six franchises.
For franchisees seeking to develop more than six franchises, the Development Fee is calculated differently. It starts at $260,400 for the initial six franchises and then adds $30,900 for each additional franchise the franchisee is granted the right to develop. A key benefit of entering into a Development Agreement is that while franchisees must sign Pearce Bespoke's current Franchise Agreement for each location, they are not required to pay an additional initial franchise fee for each subsequent location.
This structure incentivizes multi-unit development by reducing the upfront costs for each additional franchise beyond the first. However, prospective franchisees should carefully consider their financial capacity and operational expertise before committing to a Development Agreement, as the initial Development Fee can be substantial, and is non-refundable.